What is the JCM?Basic Concept of the Joint Crediting Mechanism (JCM)Facilitates diffusion of leading low carbon technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions, and contributing to sustainable development of developing countries.Appropriately evaluates contributions to GHG emission reductions or removals from Japan in a quantitative manner, and use them to achieve Japan’s emission reduction target.Contributes to the ultimate objective of the UNFCCC by facilitating global actions for GHG emission reductions or removals.

Scheme of the JCM

Japan

Joint Committee(Secretariat)

Partner Country

・ The JC consists of representatives from both Governments・ Development/revision of the rules, guidelines and methodologies・ Registration of projects・ Discusses the implementation of the JCMProject

ParticipantsImplementation

& monitoringof projects

Government

Issuanceof credits

ProjectParticipants

Implementation& monitoringof projects

Government

Issuanceof credits

Reports issuance of credits

Notifies issuance of credits

Request registration of projectsRequest issuance of credits

Request registration of projectsRequest issuance of credits

Third party entities(TPEs)

Notifies issuance of credits

Semen Indonesia

Waste HeatRecovery Boiler E.g. High Efficiency Transformers

E.g. Energy Efficient RefrigerantsE.g. Solar Power

Number of Approved Methodologies as of Sep. 2017

The JCM related Article in the Paris Agreement

Use of market mechanisms, including the JCM, is articulated under Article 6 which prescribes for the use of emissions reductions realized oversees (internationally transferred mitigation outcomes: ITMO) towards national emission reduction targets. The amount of emission reductions and removals acquired by Japan under the JCM will be appropriately counted as Japan�s reduction in accordance with the Paris Agreement.Japan is going to contribute to the development of the guidance for robust accounting including for avoidance of double counting to be adopted by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA).

Reference information of Japan’s Intended Nationally Determined Contribution (INDC) (Excerpt)

Accumulated emission reductions or removals by FY 2030 through governmental JCM programs to be undertaken within the government's annual budget are estimated to be ranging from 50 to 100 million t-CO2.

EnergyIndustries

14

EnergyDemand

22

Energy Distribution 2

Transport 1

Waste Handling and Disposal 1

9,879 t-CO2 of JCM credits have been issued from 8 JCM projects as of Oct. 2017

21

May 2013

Ethiopia

May 2015

Saudi Arabia

Jan. 2013

Mongolia

Maldives

Jun. 2013

the Philippines

Jan. 2017 * Palau

Jan. 2014

Costa Rica

Dec. 2013

Kenya

Jun. 2013

Indonesia

Aug. 2013

Bangladesh

Mar. 2013

Viet Nam

Jul. 2013

Myanmar

Sep. 2015

Cambodia

Apr. 2014

Mexico

Jul. 2014

Lao PDR

Aug. 2013

Chile

May 2015

4th JCMPartner Countries’High-level Meeting

Nov. 2016

JCM Partner Countries(as of Oct. 2017)

Thailand

Nov. 2015

* : [Source] Presidential Communications Operations Office, Republic of the Philippines

43

Examples of Registered Projects20 projects have been registered as JCM projects as of Sep. 2017.

Eco-driving with the Use of Digital TachographsPP from Japan: NIPPON EXPRESS /PP from Viet Nam： NIPPON EXPRESS (Viet Nam)

Eco-drive promotion system using digital tachographs applied to 124 trucks in use, and contributing with an efficient and clean operation

Registered on 04 Aug 2015First credits issued on 10 Oct 2017

Viet Nam 328 t-CO2/year

Small-scale Solar Power Plants for Commercial Facilities and Schools PP from Japan: Pacific Consultants Co., Ltd. (PCKK), InterAct Inc. /PP from Palau : Western Caroline Trading Company, Surangel and Sons Company, Palau Investment and Development Company, Palau Adventist Schools

Grid connected solar photovoltaic (PV) systems which endure salt wind from the ocean, installed to produce clean energy at commercial facilities and schools for self consumption

Registered on 21 Apr 2015 (commercial facilities)

12 July 2016 (commercial facilities and schools)

First credits issued on 22 Dec 2016

Palau 690 t-CO2/year

Introduction of Amorphous High Efficiency Transformers in Power Distribution SystemsPP from Japan: Yuko Keiso Co., Ltd. /PP from Viet Nam: EVN Southern Power Corporation

Installation of 1,618 amorphous high efficiency transformers in transmission and distribution networks of southern Viet Nam

Registered on 15 May 2016First credits issued on 10 Oct 2017

Viet Nam 610 t-CO2/year

Energy Saving at Convenience StoresPP from Japan: Lawson, Inc./PP from Indonesia: PT MIDI UTAMA INDONESIA Tbk

High efficiency refrigeration system for food and beverages using a natural refrigerant, Inverter-type air conditioners and LED lighting developed by Panasonic and installed at convenience stores

Registered on 03 Jun 2016

Indonesia 141 t-CO2/year

Introducing Solar PV Systems on Rooftops of Factory and OfficePP from Japan: Pacific Consultants Co., Ltd. (PCKK) /PP from Thailand: Siam Steel International Public Company

Solar PV system grids installed in factory complex rooftops for self-consumption

Registered on 21 Aug 2017

Thailand 491 t-CO2/year

Solar Power Plant for Power SupplyPP from Japan: Farmdo Co, Ltd. /PP from Mongolia: Bridge LLC, Everyday Farm LLC

Solar PV systems installed in agricultural farm grids achieving CO2 emission reductions and generating revenues from electric power sales

Registered on 26 May 2017

Mongolia 2,171 t-CO2/year

A mega Solar Power Project in Darkhan CityPP from Japan: Sharp Corporation /PP from Mongolia: Solar Power International LLC

10MW solar power plant grids consisting of 32,000 modules constructed across vast Mongolian plain fields to supply clean energy

Registered on 26 May 2017First credits issued on 24 Oct 2017

Mongolia 11,221 t-CO2/year

Introducing Double-bundle Modular Electric Heat Pumps at a HotelPP from Japan: Toyota Tsusho Corporation. /PP from Indonesia： PT. TTL Residences

Energy efficient electric heat pumps replacing conventional diesel/oil boilers installed in a new residential hotel, to provide hot water and air conditioning

Registered on 10 Feb 2017

Indonesia 175 t-CO2/year

65

JCM Financing Programmes bythe Ministry of the Environment, Japan (MOEJ)

Asian Development Bank (ADB) Trust Fund: Japan Fund for the JCM (JFJCM)

JCM Model ProjectsScope of the financing: facilities, equipment, vehicles, etc. which reduce CO2 from fossil fuel combustion as well as construction cost for installing those facilities, etc.

Eligible Projects: starting installation after the adoption of the financing and finishing installation within three years.

Includes collaboration with projects supported by JICA and other governmental-affiliated financial institute.

Budget from FY 2017 to FY 2019 JPY 6 billion (approx. USD 60 million*) in total by FY 2019 *USD 1 = JPY 100

International consortiums

(which include Japanese entities)

Provides funds to cover less than half of project’s investment cost

Conduct MRV and are expected to deliver at least half of the JCM credits issued

Budget for FY 2017 JPY 1 billion (approx. USD 10 million)

Introduction of Solar Panels for Power Generation at an International School (PP from Japan: Asia Gateway Corporation / PP from Cambodia: International School of Phnom Penh)

Introduction of Waste to Energy Plant in Yangon City (PP from Japan: JFE Engineering Corporation / PP from Myanmar: Yangon City Development Committee)　

Scheme To acquire credits of the JCM, provides financial incentives for the adoption of advanced low-carbon technologies which excel in GHG emissions reduction but expensive in terms of general ADB-financed projects.

ProjectMRV

Additional costs with adoption of

advanced low-carbon technologies

GHG Emission Reductions

Mitigation through conventional technologies

(Selection from pipeline projects)Loan/

Grant etc.

Other financialinstitutions and

funds

Co-financing

Loan/Grant etc.

InterestBuy-down(Non-sovereign)

Contribution

ADB

JFJCM(Trust Fund)

OCR/ADF*

Grant

JCM Credits

*OCR: Ordinary Capital Resources ADF: Asian Development Fund

87

JCM Financing Programmesby MOEJ

A Proposal for our future

◆Energy Industries ◆Energy Distribution ◆Energy Demand ◆Transport ◆Waste Handling and Disposal ◆REDD+Italic projects in bold have started operations!

Bangladesh:◆Energy Saving for Air Conditioning & Facility Cooling by High Efficiency

Centrifugal Chiller (Suburbs of Dhaka)◆Installation of High Efficiency Loom at Weaving Factory◆Introduction of PV-diesel Hybrid System at Fastening Manufacturing Plant◆50MW Solar PV Power Plant Project◆Installation of High Efficiency Centrifugal Chiller for Air Conditioning System in

Clothing Tag Factory◆Energy Saving of Air-conditioning System by Recovering Waste Heat from

Engine in Textile Factory

Cambodia:◆Introduction of High Efficiency LED Lighting

Utilizing Wireless Network◆Introduction of Ultra-lightweight Solar Panels

for Power Generation at International School◆Introduction of 1MW Solar Power System and

High Efficiency Centrifugal Chiller in Large Shopping Mall◆Introduction of 0.8MW Solar Power

Generation in International School◆Energy Saving by Inverters for Distribution

Pumps in Water Treatment Plant

Viet Nam:◆Eco-driving with the Use of Digital Tachographs◆Introduction of Amorphous High Efficiency Transformer in Northern, Central and Southern

Power Grids （4 projects）◆Introduction of High Efficiency Air-conditioning in Hotel◆Energy Saving in Lens Factory with Energy Efficient Air-conditioners◆Energy Saving in Acid Lead Battery Factory with Container Formation Facility◆Introduction of Solar PV System at Shopping Mall in Ho Chi Minh City◆Energy Saving in Factories with Air-conditioning Control System◆Installation of High Efficiency Kiln in Sanitary Ware Manufacturing Factory◆Introduction of High Efficiency Water Pumps in Da Nang City◆Installation of Energy Saving Equipment in Lens Factory◆Introduction of Energy Saving Equipment to Automotive Wire Production Factory◆Introduction of High Efficiency Centrifugal Chiller to Rubber Products Factory◆Introduction of Energy Saving Equipment to Brewery

Indonesia:◆Energy Saving for Air-Conditioning and Process Cooling at Textile Factory (2 projects)◆Energy Savings at Convenience Stores◆Energy Efficient Refrigerants to Cold Chain Industry◆Energy Saving by Installation of Double Bundle-Type Heat Pump◆Power Generation by Waste Heat Recovery in Cement Industry◆Installation of Solar Power System and Storage Battery to Commercial Facility ◆Energy Saving through Introduction of Regenerative Burners to the Aluminum Holding　Furnace of the Automotive Components Manufacturer◆Energy Saving for Textile Factory Facility Cooling by High Efficiency Centrifugal Chiller◆Introduction of High Efficient Old Corrugated Cartons Process at Paper Factory◆Reducing GHG Emission at Textile Factories by Upgrading to Air-Saving Loom◆Energy Saving for Air-conditioning at Shopping Mall with High Efficiency Centrifugal Chiller◆Energy Saving for Industrial Park with Smart LED Street Lighting System◆Introduction of High Efficiency Once-through Boiler System in Film Factory◆REDD+ project in Boalemo District◆Installation of Gas Co-generation System for Automobile Manufacturing Plant◆Introduction of High Efficiency Once-through Boiler in Golf Ball Factory◆1.6MW Solar PV Power Plant Project in Jakabaring Sport City◆10MW Mini Hydro Power Plant Project in North Sumatra◆Introduction of LED Lighting to Sales Stores◆Introduction of High Efficiency Looms in Weaving Mill◆Energy Saving in Industrial Wastewater Treatment System for Rubber Industry◆Introduction of 0.5MW Solar Power System to Aroma and Food Ingredients Factory◆Introduction of Gas Co-generation System and Absorption Chiller to Large Shopping Mall◆Introduction of 1MW Solar Power System in North Sulawesi◆Energy Saving for Air-Conditioning Utility System in Airport Terminal by High-efficiency Control Equipment

Kenya:◆6MW Small Hydropower Generation Project in

Rupingazi◆Introduction of Solar PV System at Salt Factory

Maldives:◆Solar Power on Rooftop of School Building Project◆Smart Micro-grid system for POISED Project in

Addu Atoll (ADB project)

the Philippines:◆15MW Mini Hydro Power Plant Project in Siguil

River in Mindanao◆4MW Mini Hydro Power Plant Project in

Taguibo River in Mindanao◆Introduction of 1.53MW Rooftop Solar Power

System in Auto Parts Factories◆Introduction of 1MW Rooftop Solar Power

System in Vehicle Assembly Factory

Palau:◆Small-scale Solar Power Plant for Commercial Facilities in Island States Project◆Small-scale Solar Power Plants for Commercial Facilities Project II◆Solar PV System for Schools Project

Mexico:◆Introduction of 4.8MW Power Generation

with Methane Gas Recovery System◆Introduction of Once-through Boiler and

Fuel Switching to Tequila Plant◆Los AltosⅡ Wind Farm Projec◆Introduction of 20MW Solar Power

System in San Luis Potosí

Costa Rica:◆5MW Solar Power Project in Belen◆Introduction of the High Efficiency Chiller

and the Exhaust Heat Recovery System

Mongolia:◆Upgrading and Installation of Centralized Control System 　of High-efficiency Heat Only Boiler (HOB)◆Installation of 2.1MW Solar Power Plant for Power Supply in Ulaanbaatar Suburb◆10MW Solar Power Project in Darkhan City◆Installation of 8.3MW Solar Power Plant in Ulaanbaatar suburb Farm◆Introduction of 15MW Solar Power System near New Airport

Myanmar:◆Introduction of Waste to Energy Plant in Yangon City◆Introduction of Energy Saving Brewing Systems to Beer Factory◆Introduction of High-efficiency Once-through Boiler in Instant Noodle Factory◆1.8MW Rice Husk Power Generation◆Introduction of Energy Efficient Refrigeration System in Logistics Center

Lao PDR:◆REDD+ Project in Luang Prabang Province

through Controlling Slush-and-burn◆Introduction of 14MW Floating Solar Power

System in Vientiane◆Introduction of Amorphous High Efficiency

Transformers in Power Grid

Chile:◆Introduction of 1MW Rooftop Solar

Power System to University ◆Introduction of 4.6MW Solar Power

System near Santiago Metropolitan Region

Saudi Arabia:◆Introduction of High Efficiency

Electrolyzer in Chlorine Production Plant

Ethiopia:◆Introduction of Biomass CHP Plant

in Flooring Factory

Thailand:◆Energy Saving at Convenience Stores with High Efficiency Air-conditioning and 　Refrigerated Showcase◆Introduction of Solar PV System on Factory Rooftop◆Reducing GHG Emission at Textile Factory by Upgrading 　to Air-saving Loom (Samutprakarn)◆Energy Saving for Semiconductor Factory with High Efficiency Centrifugal Chiller and 　Compressor◆Installation of Co-generation Plant for On-site Energy Supply in Motorcycle Factory◆Energy Saving for Air-conditioning in Tire Manufacturing Factory with High Efficiency 　Centrifugal Chiller◆Installation of High Efficiency Air Conditioning System and Chillers in Semiconductor Factory◆Introduction of High Efficiency Ion Exchange Membrane Electrolyzer 　in Caustic Soda Production Plant◆Introduction of LED Lighting to Sales Stores◆Introduction of High Efficiency Chilled Water Supply System in Milk Factory◆Introduction of 12MW Power Generation System by Waste Heat Recovery 　for Cement Plant◆Introduction of Co-generation System to Motor Parts Factory◆Introduction of Energy Saving Refrigerator and Evaporator with Mechanical Vapor 　Recompression in Amino Acid Producing Plant◆Introduction of 3.4MW Rooftop Solar Power System to Air-conditioning 　Parts Factories◆Introduction of 1.5MW Rooftop Solar Power System and Advanced EMS for 　Power Supply in Paint Factory◆Introduction of Energy Efficient Refrigeration System in Industrial Cold Storage◆Introduction of Heat Recovery Heat Pumps to Food Processing Factory ◆Introduction of 5MW Floating Solar Power System on Industrial Water Reservoir◆Introduction of 27MW Rooftop Solar Power System to Large Supermarkets◆Introduction of High-efficiency Boiler System to Rubber Belt Plant◆Energy Saving by Air-conditioning Control System in Precision Parts Factories◆Introduction of Biomass Co-generation System to Food Factory◆Introduction of Energy Efficient Equipment to Bangkok Port

Selected projects in FY 2013/2014/2015/2016/2017List of selected projects under the JCM support programme is available at https://www.carbon-markets.go.jp/en/jcm/about/support/adoption.html

•Other 1 project in Malaysia

109

Office of Market MechanismsGlobal Environmental BureauMinistry of the Environment, JapanURL: http://www.env.go.jp/en/

Carbon Markets ExpressOverseas Environmental Cooperation Center, Japan (OECC)E-mail: info@carbon-markets.go.jpURL: https://www.carbon-markets.go.jp/eng/

Copyright © 2017 by the Ministry of the Environment, Japan (MOEJ). The publication of this brochure has been commissioned to OECC by the MOEJ.

The following websites provide the latest information on the JCM■ JCM website: https://www.jcm.go.jp■ New Mechanisms Information Platform: http://www.mmechanisms.org/e/

GHG emissions of 400 g-CO2 per 1 brochure associated with raw material procurement and printing will be offset by a project under the J-Credit Scheme.

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Ver. 7.0 (as of Oct. 2017)